When your insurance company breaches the implied covenant of good faith and fair dealing you may recover for mental distress only as long as the distress was caused by the insurance company’s delay or withholding insurance benefits. There must be a financial loss caused by your insurance company’s handling of your claim that gives rise to additional damages for emotional distress.
The essence of the policyholder’s emotional distress is the anxiety arising from the financial deprivation caused by the delay or nonpayment of the claim. Policyholders need to make a showing that there has been some financial loss in order to recover emotional distress damages.
If your insurance company has wrongfully withheld your insurance benefits call today for your free consultation with a partner. No recovery. No fee.